The Latest P2P News – 12/10/16

P2P News – All The Latest Updates


Hi guys and welcome to our October P2P news blog round-up. As usual, we’ll be taking a look at the latest goings-on in the P2P world and today we start our round-up and look at the proposed regulations that peer-to-peer lenders would like to see in place to giving you some of our very own P2P tips! Missed our previous round-ups? If so, catch up here.

Peer-To-Peer Lenders Want Tougher Regulations

P2P News

Peer-to-peer lenders have said there is an “urgent” need for tougher regulation of their own sector to ensure that consumers understand the risks they are exposed to, thus avoiding a future backlash if investments fail to perform. (, October 2016)

Peer-to-Peer Finance Association (P2PFA)’s Robert Pettigrew stressed that investors need to realise that peer-to-peer lending products in no shape or form resemble anything equivalent to the guarantees represented by a bank deposit.

The P2PFA mentioned that advertisements from lenders suggesting that peer-to-peer loans were similar to a bank or savings deposit with instant access were “unhelpful”. Eight of the P2PFA members who control a large majority of the UK market are requesting that the regulator sets out stricter guidelines on how loans are marketed to consumers, as well as setting out common standards for declaring bad debts.

Back in February, Lord Adair Turner (who will feature in our third P2P news story) — former chair of the FCA’s predecessor, the Financial Services Authority — told a journalist that, over the next decade, peer-to-peer loans could be the source of losses that “make the worst bankers look like absolute lending geniuses”.

The P2PFA have admitted that they would welcome the development of new rules to “protect not exclude” retail investors, they claim that peer-to-peer lenders have introduced beneficial competition and choice into the investment and borrowing markets respectively.

There has been this fear by some that P2P is confusing in understanding the differences between the concept and also equity crowdfunding.

However, as mentioned in our previous P2P news round-up, the P2PFA stated that there was no evidence to suggest that consumers are currently underestimating the risks associated with peer-to-peer lending as different platforms have adopted a variety of approaches to ensure a high level of consumer understanding. Top industry lenders recommend that investors should require financial advice if they are unsure about the investing process.

Image source : Investopedia

Chinese P2P: Loans More Than Doubled in September

China P2P

Chinese P2P loans more than doubled to a record high at the end of September, despite the on-going challenges that the Chinese authorities face in regulating the exponentially growing sector.According to the official Xinhua news agency, P2P loans surged 153.5 percent to 956 billion yuan ($143 billion).

What’s particularly interesting from the data is that more than a month after China’s banking regulator used aggressive measures to restrain the P2P sector, warning that almost half of the 4,000-odd online lending platforms were seen as problematic.

So how has The Red Dragon been able to sustain P2P growth during problematic times? Many people moving from rural areas have a difficult time getting the loans they need because there is perception that they are not credit-worthy, because of this, there has been a surge in demand for P2P lending products and services. The government has taken steps to clean up the industry after a series of scandals (such as the Ezubao scandal which springs to mind).


Lord Turner Changes His Tune on P2P Lending

lord turner p2p

As briefly mentioned in the first story, one of the industry’s most well-known critics of peer-to-peer lending, Lord Adair Turner, has changed of his tune, he is now suggesting that the sector could potentially prevent a future credit crunch.

During a recent speech, Lord Turner was complimentary of the industry, he even suggested that online peer-to-peer lenders could perform credit underwriting.

In addition, he predicts that P2P lending could even act as a “spare tyre to the credit system, making credit crunches less likely.”

In contrast, he still stood by his comments that he made back in February about P2P causing losses, but understood that this loss would only make up a small part of the sector.

Image source : Business Insider


P2PFA Releases Major Research on Economics of P2P Lending

p2p research

The P2PFA has released a commissioned study on the economics of the peer to peer lending market in the UK. The independent assessment, provided by the economic consulting firm of Oxera, analysed the risks, costs and benefits of peer-to-peer lending and provided an objective account of how P2P business models work. (Crowdfund Insider, October 2016)

The research primarily focused on the eight-member platforms of the P2PFA – which are known for their high standards of transparency and operation – the P2PFA members comprise over seventy-five per cent of the UK market.

Oxera’s Reinder van Dijk, sees P2P lending as a “real innovation” bringing benefits to both borrowers and investors.

Some key takeaways from the research was that P2P lending has created additional competition and choice in the market for loans and investment, in addition, it provides alternatives for retail investors, opening up access to risk-and-return from an asset class of consumer and business loans with net returns of between 4%-8%.

Moreover, P2P lending does not create systemic risk, and platforms are well-placed to weather a downturn in the credit cycle – borrower defaults would need to increase at least threefold to reduce average interest rates to investors below zero.

It was also revealed that the majority of investors have a good understanding of the associated risks involved.

You can read the full report below.

UK P2PFA 2016.09.30 – Oxera Report – The Economics of P2P Lending by CrowdfundInsider on Scribd


Basic P2P Tips

p2p tips

To end this month’s round-up, we thought we would share some basic P2P tips to help you on your way to getting started with peer to peer investments.

Our first P2P tip of the day is to diversify – just like with a stock market portfolio diversifying is key, with P2P lending, you should further diversify by spreading investments across multiple platforms. End of the day, the more you diversify, the less likely you’ll be to lose money on your investment.

Our second tip is to do your research. As Francis Bacon once said knowledge is power. Read the reviews on each platform you consider before getting involved. In addition, ask fellow investors of their experiences. It’s worth noting that not all lending platforms are the same, so make sure you’ve researched how they conduct their business and study their procedures for screening borrowers, as well as learning how they deal with late payments and defaults.

Finally, make sure you re-invest! The last thing you want is to have a static investment, DO take advantage of the compounding yields to be gained by continual reinvestment of returns into new loans.

Looking for more tips? It’s a bit of luck we’re a generous bunch at The House Crowd, view our 7 Top Tips for Investing in P2P Lending here.


What Are Your Thoughts?

Which of our chosen P2P stories has interested you the most? We would love to hear from you, feel free to leave us a comment on our Facebook and Google Plus pages. If you prefer to tweet us, tweet @TheHouseCrowd.

In the meantime if you want to know more about Property Crowdfunding do register for our Information Pack which will tell you all about it. 

Register Now for more Info

The Latest P2P News – 16/9/16

P2P News – All The Latest Updates


Hi guys and welcome to another P2P news round-up, as usual we will be giving you a snapshot of the latest goings-on in the P2P world. Today we look at an array of news items from there is no evidence of P2P investors underestimating risk to focusing on what the P2P and marketplace lending industry needs to do to go mainstream. Missed our last P2P news round-up? If so, catch up here.

No evidence of P2P Investors Underestimating Risk

P2P Lending

Last month, former FCA chief executive, Tracey McDermott, voiced concerns about the rapid growth of the P2P marketplace that could potentially leave some investors unaware of the risks.

However, the P2PFA’s (Peer-to-Peer Finance Association) director Robert Pettigrew, stressed that this was not the case.

Mr. Pettigrew recently mentioned that although approaches varied depending on the company, the P2PFA was dedicated to ensure investors were aware of all the risks involved.

In addition, he stated : “Different platforms have adopted a variety of approaches to ensure a high level of consumer understanding, but with continued grow and expansion in the sector, the focus on making sure that all investors have an awareness and understanding of the risks of peer-to-peer finance products will continue to be a major priority for P2PFA platforms.” (Bridging & Commercial, September 2016)

Platforms such as LendingCrowd and LandBay recommend that investors should require financial advice if they are unsure about the investing process.

Stock Market VS Peer-to-Peer Lending Investments – Who Wins?

stock market p2p

To buy stock, or not to buy stock that is the question! With recent markets in a volatile state you might want to look for an alternative.

Anyone who is an active stock market investor knows that it takes time to do your research (and a bit of guess work) to figure out where the market(s) are heading.

However, if you’re looking for something that’s less time consuming and slightly more effective – P2P might be for you. There are many platforms out there that are free to pick through the loans that are listed by prospective borrowers and read their stories and explanations of why they need a loan for and what they’ll do with it.

You should review the prospectus of your chosen P2P lending platform before investing as well as spreading the risk of your investment.

With any investment there is always risk involved, however, many view P2P is an alternative, especially with the current volatility of the markets. Anyone looking to diversify their investment and move away from traditional investment options might want to go down the P2P route.

Interested in P2P? If so, why not take a look at our P2P page where you can view investments and order a free information pack.

Brexit Vote Scares Investors Away From Traditional Asset Classes

Brexit P2P

New research suggests that the UK’s Brexit vote is putting investors off traditional asset classes.

Research revealed that 13 per cent of active investors said they have steered clear of currency markets since the EU vote back in late June, in addition, 10 per cent have avoided government bonds and nine per cent have u-turned from investing in equities.

Leicestershire based P2P lender ThinCats told City A.M. that 30 per cent of investors – from a survey of 2,000, including 500 defined as active investors have been put off traditional asset classes.

However, the research showed that assets such as gold has become more attractive, 14 per cent of investors stated that they have turned to the commodity as an alternative. Moreover, 7 per cent, said they view P2P as more attractive after the Brexit vote.

What P2P and Marketplace lending Industry Needs To Do To Go Mainstream


A lack of transparency is one of the key obstacles for p2p and marketplace lending platforms experiencing considerable growth in scale, according to ThinCats’ John Mould, who believes there are several other hurdles the industry needs to overcome to fit into the mainstream investment universe. (Altfi, September 2016)

It’s fair to say that 2016 has been a challenging year for the industry which has seen high profile scandals as well as seeing slow growth.

ThinCats’ CEO told Altfi that he believes the broader industry should deal with several issues centring on greater transparency in returns, what investors are exposed to and securitisation. Mr. Mould says that many platforms are really asset management firms in disguise and should therefore be regulated as such.

Areas where Mould stresses investors and borrowers need greater transparency is in provision funds, collective pools of cash liquidity that act as a type of insurance for investors.

In the Altfi article he also questions the lack of clarity that is linked to retail and institutional investors. He stresses that the issue is that we are not quite sure how they are both treated fairly. We know in a fund that they all come at the same unit price, he mentions, but he questions on who makes the decision process on the loans?

He again questions the lack of clarity in the last paragraph of the article : “If you’re the regulator you’re saying half of them look like fund managers, half of them look like banks but worse and half of them have these provision funds that we don’t know how they work and half of them just seem to be securitising debt. How does that work?”.



What Are Your Thoughts?

Which of our chosen P2P stories has interested you the most? We would love to hear from you, feel free to leave us a comment on our Facebook and Google Plus pages. If you prefer to tweet us, tweet @TheHouseCrowd.

In the meantime if you want to know more about Property Crowdfunding do register for our Information Pack which will tell you all about it. 

Register Now For More Information

The Latest P2P News – 18/8/16

P2P News – All The Latest Updates


Hi guys and welcome to our August P2P news blog round-up, as usual we will be giving you five of the latest stories from the P2P world. Today we start our round-up by looking at credit card giants Visa and MasterCard who are diving head first into P2P payments to focusing on UK SMEs who are flocking to P2P. Missed our last P2P News round-up? If so, catch up here.


Visa and MasterCard dive head first into P2P

Mastercard Visa P2P

A new partnership with Visa and Mastercard will help grow the reach of the clearXchange network, which allows customers at its member banks to make no-fee peer-to-peer (P2P) transfers.

This is for users who have a US-issued debit card, they will be able to use Visa Direct and Mastercard Send respectively to transfer funds in real time from holders of accounts at clearXchange’s member banks, which include Bank of America, JPMorgan Chase, US Bank, and Wells Fargo.

For major credit card networks this is a huge push to go digital. Both credit card titans have been working on their API platforms as well as rebranding their services. The Visa-Mastercard partnership gives clearXchange another string to its bow as it tries to grab digital P2P market share.

These partnerships should open up the world of P2P payments to an entirely new segment of the U.S. population, it can be inferred that it should in turn spur more payments of this type. A U.S. consumer survey revealed that 59% would use P2P payments due to convenience. In addition, 29% of those surveyed said they would use P2P payments for incentives.


Samsung Pay takes on PayPal in P2P payment

Samsung P2P

Sticking with payment giants, Samsung is also said to be planning to add a person-to-person, or P2P, transaction function to the mobile payment solution this year and will compete with PayPal’s P2P service Venmo which has gained popularity in The States and Japan respectively.

PayPal recently said the Venmo service saw the amount of transactions processed through the app increase 140 percent on-year to $4 billion in the second quarter. (The Investor, August 2016)

In Samsung’s native South Korea, Kakao, operator of mobile messenger KakaoTalk are spearheading the mobile P2P payment sector.

Commentators have mentioned that no single company is currently leading the mobile payment solution market, the adoption of a P2P function, if deployed, could give a boost to the mobile phone giant in increasing its presence in the market.


P2P in China: Why Firms Need Better Risk Controls

China P2P

This is one P2P issue that has had appeared regularly this year and something we have covered in a previous P2P news blog. P2P in China has become a controversial subject due to fraudulent activity taking place which resulted in a number of arrests.

Since 2015, many P2P platforms including Ezubao, the Dada Group, the Kuailu Group, the Zhongjin Group and others have been charged with illegal fundraising, involving tens of billions of yuan. (Wharton, University of Pennsylvania, August 2016)

However, this has not only happened in China, back in May the U.S. Treasury Department released a report criticising the peer-to-peer (P2P) lending business and recommended it be more tightly regulated (like it is here in the UK).

By the end of May this year, China’s P2P industry reached 2.036 trillion yuan (about $300 billion in transaction volumes).

Kaixindai‘s Zhihan Zhou was interviewed by the University of Pennsylvania and mentioned that the challenge for the industry in China goes from small to big. Many P2P platforms start from the lowest end (individual consumption credit) without gradual evolution. This causes trouble subsequently.

He uses U.S. based company Lending Club as an example – It originally hoped to evaluate personal risk based on data extracted from Facebook, Twitter and other social platforms. That is in America, which has much more sophisticated credit investigation and personal data systems than in China. So you can imagine a large amount of P2P business based on personal credit in China will meet trouble in operation if there is no appropriate risk control system in place. (Wharton, University of Pennsylvania, August 2016)

In addition he was asked about why do many P2P companies in China fail, Zhou said it could be linked to expanding too quickly, e.g. their operational capabilities including data accumulation and risk-control models haven’t caught up. He stresses that the industry requires the practitioner to understand both the internet and finance. People from traditional banks tend to stress more on risk control, but less on USX, especially on Internet-user experience. It’s all about balance.

Interested in both P2P and China? Read the full interview here.


How Brexit Has Impacted P2P Lending

Brexit crowdfunding

Managing director and founder of Funding Circle, James Meekings recently spoke to Bloomberg about Brexit and P2P Lending.

Bloomberg’s Adam Satariano asked James an array of questions, firstly he asked – “A key part of your business is having access to the European single market, Brexit has caused uncertainties are you thinking of changing your base of operations?”

James mentions that they have various offices in Europe from Berlin to London and have to abide by regulations in every country that they operate in. He also mentioned that the EU referendum doesn’t make a difference to how they behave in different countries.

Another question that was put forward by Mr. Satariano was about Lending Club and how they’ve been going through tumultuous times with its stock collapsing and questions about its internal controls, he asks James how their situation impacts the industry,investors, banks, and hedge funds that they rely on.

James openly admits that is has been a challenging year – from the worries of the Chinese economy, the Lending Club challenges, plus the EU referendum. He says the Lending Club challenges are isolated and are about control issues, in the UK we have a dedicate framework, and for Funding Circle they are seeing institutional investors being more aware and asking more questions about their operational risk framework, which he says is quite right. They have been reassured by the answers that the company has given them.

Watch the full Bloomberg interview here.


UK SMEs Flock to P2P Lending Boosting Jobs and Housebuilding

P2P News

The p2p and marketplace lending industry is driving small business and economic growth, particularly in areas hit hardest since the financial crisis, a new report suggests. (Altfi, August 2016)

A report by the Centre for Business and Economics Research (CEBR) revealed that SMEs are increasingly using p2p and marketplace lending platforms to meet their financial needs.

The findings showed that the North East of England was using this particular form of the alternative finance the most. In England, it was the region that was most affected by the 2008 financial crisis.

The CBRE’s research which was produced with Funding Circle, examined loans made through the platform to small businesses since 2010. The results found that lending by p2p platforms in the UK to small businesses rose by 50 per cent from the beginning of 2015 compared to the beginning of 2016. In addition, it claims Funding Circle’s loans have boosted the UK economy by £2.7bn since 2010, supporting 40,000 new jobs and helping small house builders to add 2,200 new homes.

CBRE and Funding Circle’s research also revealed that 61 per cent of borrowers saw their revenue increase as a result of taking a loan, while nearly half of the SMEs reported a rise in profits.


What Are Your Thoughts?

Which of our chosen P2P stories has interested you the most? We would love to hear from you, feel free to leave us a comment on our Facebook and Google Plus pages. If you prefer to tweet us, tweet @TheHouseCrowd.

In the meantime if you want to know more about Property Crowdfunding do register for our Information Pack which will tell you all about it. 

Register Now for more Info

The Latest Crowdfunding News – 10/7/16

The Latest Crowdfunding News


Hi guys and welcome to our first crowdfunding news edition for August. As usual we will be taking a look at the latest goings-on in the world of crowdfunding and today we start our round-up by focusing on London’s most exciting crowdfunding campaigns of the summer to looking at why equity crowdfunding matters to small business. Missed our last crowdfunding round-up? If so, catch up here.


London’s Most Exciting Crowdfunding Campaigns This Summer

London Property Prices

Turning to the crowd to fund the latest expansion plans or business venture as we know is becoming an increasingly popular option for businesses of all shapes and sizes, and last year crowdfunding in the UK reached £245m.

This year it continues to go from strength to strength with the likes of SyndicateRoom, Seedrs, and Crowdcube dominating alternative investment.

So what campaigns have excited those in the capital? Starting with Revolut, the London fintech launched a crowdfunding campaign last month in order to top up its oversubscribed £7m Series A funding round.

The fintech startup, which allows users to spend cash abroad on a fee-free Mastercard in conjunction with its app, experienced overwhelming demand with a record £12m pledged by interested parties within 10 hours of its launch according to Business site Bdaily.

We briefly mentioned about Crowdcube being a main player when it came to alternative investment, they too got in on the act and aimed at reaching a 5m raise which they exceeded. Crowdcube attracted £6.2 million of investment on its own platform, 124% more than it originally targeted.

Another exciting campaign that we have stumbled across is from Hire Space.

The London startup that has had big client names such as Facebook and Red Bull, closed its 500k crowdfunding campaign back in June. Their funding came from over 200 venues, event professionals and private investors respectively.

According to Bdaily : “Co-founder Edward Poland has some ambitious plans for the firm following the investment drive, with plans to ‘revolutionise the events industry’ both in the UK and abroad as Hire Space entrenches its position at the forefront of the market.”

We will definitely be watching this space (no pun intended!) for more future crowdfunding campaigns in the capital, here are two more from the Bdaily article that might be of interest, view here.


Crowdfunding App Tilt Adds P2P features

tilt crowdfunding p2p

We would normally add a P2P based story in our P2P news round-ups (if you missed our last one a fortnight ago you can catch up here), however, we previously mentioned Tilt in a December post and thought we would keep you updated about the app.

For those of you who have never heard of Tilt, in a nutshell the app is for groups of friends to pool money together for a group goals such as fundraising or funding a trip for example.

Tilt is now focusing on P2P features, the platform’s owners have opted to launch a formal P2P transfer function through the addition of “pay” and “request” buttons according to Business Insider.

Their 18-24 user base falls directly into the audience most attuned to digital P2P payments. Mainly because of the social nature of the app itself and many users know each other. This could definitely help the application thrive, because P2P applications benefit from engaged users bringing new users into the mix, who continue to refer additional customers and help expand Tilt’s network.

Image source : Tilt Twitter

Brexit Blamed for Fall in Crowdfunding Deals

Brexit crowdfunding

According to research by Beauhurst, they found out that crowdfunding platforms raised £87.4m in the first half of 2016, a drop of just over 4 per cent from the £91.3m raised in the previous six months. (, August, 2016)

In addition, their findings concluded that the uncertainty around the vote to leave the EU and the nature of the UK’s relationship with Europe has contributed to having deals being delayed or even abandoned.

UK Crowdfunding Association (UKCFA) spokesman Bruce Davis mentioned in the FT that the dip in deals is just a pause. In addition he stresses that the market has slowed down due to recent events, however, the UK is still taking a large share of the market.

Mr. Davis said that The UKCFA are confident that the number of deals will grow again, he stated in the FT : “The key to that will be strong signals from the government on strategy to see where it wants to see growth and investment.”


Dave Goes to Rio Thanks to Crowdfunding

RIO 2016 Crowdfunding

This one is for all you Olympics fans out that there! Dave Leach, a coach at Lewes AC has had a string of successful athletes at the Sussex based athletics club, including Rob Mullett who was selected to Represent Team GB at the Rio Olympics for the Men’s 3000m steeplechase.

Dave’s dream was to travel to Rio with Rob (who he has coached Rob since he was 12 years old), thanks to crowdfunding, Dave’s dream came true!

Club members, friends and colleagues used crowdfunding to raise the money to send Dave to the Brazilian host city; sponsors have kitted Dave and Rob from head to toe in Olympic fashion to be ready for all weather conditions there. In fact the funding was so successful, the target was reached and beaten (the initial target was 3k, however, 5k was raised for Dave).

For a coach who hasn’t been paid for 25 years and has never been on a plane before, this is another example of how crowdfunding has saved the day once again!

Image source : The Telegraph

Why Equity Crowdfunding Matters to Small Business – A View from The U.S.

Equity Crowdfunding USA

For those of you who follow our various blog round-ups know that we look at quite a few viewpoints and stories from all over the world, this time we turn our attention to across the pond.

A series of recent laws and regulations have opened the door to three new vehicles for raising investment dollars for small businesses through equity crowdfunding. These new forms of investment crowdfunding may well transform the nature of small business capital raising in the United States, by enabling individual investors to take equity stakes in new companies as Entrepreneur and Yahoo Finance both explain.

Last September, Title IV on the JOBS Act went into effect modifying regulation A of the Securities Act. In layman’s terms this piece of legislation has a very important meaning – growing companies in The States can now go public in a small offering and raise up to $50,000,000 dollars through a streamlined, low-cost alternative to a full public offering.

Companies can now test the water so to speak, meaning that small companies can let the public know that they are thinking of raising investment dollars. In America this form of announcement has been illegal since the 30’s, however, due to transparency levels and openness that these array of online platforms provide, it has now been made legal.

As a result of the legislation, many small business in America have learned to leverage small early stage investments via crowdfunding to increase their bargaining power and get more money from venture capitalists later as Richard Swart mentions in his article and these new rules give multiple financing options available to small businesses across the country.


What Are Your Thoughts?

Which of our chosen crowdfunding stories has interested you the most? We would love to hear from you, feel free to leave us a comment on our Facebook and Google Plus pages. If you prefer to tweet us, tweet @TheHouseCrowd.

In the meantime if you want to know more about Property Crowdfunding do register for our Information Pack which will tell you all about it. 

Register Now for more Info

7 Top Tips for Investing in P2P Lending

Peer to peer lending is a fairly new kid on the block, but one that’s making its presence clearly known. The idea behind peer to peer lending is that individuals provide unsecured loans to those looking for finance, a move that has tempting advantages (ROI-wise) on traditional bank or building society savings accounts. The P2P industry is growing at a rapid rate, driven by the awkward difficulties of obtaining loans from banks these days, as well as the general loss of faith in the established banking industry since the 2008 crash.

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Whilst, of course, not without risk, peer to peer lending has some real advantages to offer. With peer to peer secured loans through The House Crowd, short term investments with a fixed return give investors the confidence of knowing what to expect. That’s not to say, however, that you can just rush into P2P lending willy-nilly. You do need to know what you’re doing in order to make the right kind of investments for your needs.

That’s why we’ve put together these handy tips, to help you on your way to getting started with peer to peer investments in a smart and informed way!

  1. Diversify

Any financial advisor you speak to will tell you how important it is to have a fully diverse portfolio of investments. The same goes for peer-to-peer lending.

We recommend spreading your risk by ensuring you don’t lend out any more than 1% of your portfolio to one single business. With peer-to-peer lending, you should further diversify by spreading investments across multiple platforms.

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This is good advice when it comes to maximising return, and giving you the perspective to ascertain which loans are generating the best yields. Furthermore, if one platform you’re using suddenly experiences issues, or – worse still – vanishes altogether, then by having spread your risk across multiple peer to peer lending platforms, you’ll be in a far less vulnerable position.

The more you diversify, the less likely you’ll be to lose money on your investment.

  1. Research

Knowledge is power, and when it concerns your financial investments, it’s no less than crucial. There’s also no excuse for not being well-informed, especially when there is so much information out there on the web.

Read the reviews on each platform you consider before getting involved. Examine the track records of various platforms, get advice from other investors, keep notes, and compare and contrast before you dive in. It’s important to remember that not all lending platforms are the same, and each have their own practices, and procedures for screening borrowers, as well as handling late payments and defaults.

Here are some handy questions you might like to ask yourself:

  • What percentage of loans on this platform fall into default?
  • How are borrowers screened and evaluated?
  • What average returns have investors produced in the past?
  • What is the process for handling late payments?

The better informed you are, the more confident you’ll feel, and the more equipped you’ll be to make the right decisions for your money.

  1. Re-Invest

Don’t simply allow your returns to sit idle within the platform. This is a good way to lose out on potential income and lower your return on investment: uninvested cash earns no interest. Take advantage of the compounding yields to be gained by continual reinvestment of returns into new loans.

  1. Keep Involved

The peer-to-peer lending market is growing and evolving all the time. As such, it’s key to stay up to date with developments within the industry. Acquaint yourself with new platforms as they emerge, changes to legislation and about the loans themselves.

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Remember that peer to peer lending is not a passive exercise. You need to put the time in, in order to get anything out.

Some of the loans you’ve already made could be downgraded or even default, and you need to be fully aware whenever something like this happens. Keep abreast of new loan offers as they come up. Again, knowledge is power… a fact we cannot emphasise enough.

  1. Take it Slow

If you’re just starting out with P2P lending, don’t rush in. Do all that reading and research, but remember that the best way to learn is to actually begin. Start with smaller amounts, tentatively monitoring how these small investments perform. This will act as a kind of practice run, and give you the chance to understand the lending platform you’re using.

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As with anything in life, taking on too much too soon is likely to leave you feeling overwhelmed, and leave you prone to making mistakes, which could be costly.

  1. Know Your Risk Tolerance

We all have one. So, what’s yours?

Higher risk tends to equate to higher reward, but if you’re not comfortable with that level of risk, take a step back to a risk profile that fits your tolerance better. It’s important to carefully consider how much risk you’re prepared to take, and only invest accordingly.

  1. Be Prepared

A strong emergency fund is absolutely vital in order to cover your own personal expenses. Your investment funds should be comprised only of any money you have that is surplus to your daily needs and your emergency fund. Remember that you will not be able to withdraw money from your P2P platform on a whim.

These are just some of the most important factors to consider before you get cracking with P2P investment. You should, as we’ve said above, keep up to date and well-informed on the industry, and monitor your investments closely. It may feel a bit ‘hands-off’, but investments of this kind are certainly not a passive income source. The more you put in, attention-wise, the more you stand to get out.

You can always find out more about investing with The House Crowd by checking out all our guides and articles right here on our website. And if you’ve still got questions, our team is on hand to help!

Happy investing!

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The Latest P2P News – 29/7/16

P2P News – All The Latest Updates


Hi guys and welcome to our second P2P news edition of the month! As usual, we will be giving you a quick snapshot of the latest news with five key stories. We focus on an array of P2P topics from P2PFA releases P2P lending data for Q2 to looking at how P2P is heating up the world of fintech. Missed our last round-up? If so, catch up here.


P2PFA Releases Peer to Peer Lending Data for Q2

P2P News

The UK Peer to Peer Finance Association (P2PFA) recently released its second quarter numbers for 2016.

Their data indicates that cumulative lending now stands at £5.8 billing with £658 million in lending occurring during Q2. last year, (in the same quarter) total new lending registered at£507,936,000. But Q2 numbers are a dip from Q1 2016 when total new lending came in at £715,421,000. Both the number of borrowers and lenders increased from Q1 to Q2. Zopa remains the largest lender by cumulative total followed by Funding Circle. (Crowdfund Insider, July, 2016)

Chair of P2PFA, Christine Farnish CBE mentioned in a recent Crowdfund Insider article that peer-to-peer lending is now a mainstream alternative finance product – continued expansion in the number of investors and borrowers has clearly shown this,more than 150,376 lenders and 332,107 borrowers currently using P2PFA platforms.

ThinCats, which is a P2PFA member, company founder Kevin Caley also shared his thoughts in the article, Mr. Caley stated : alternative finance “is playing a major role in bridging the UK’s business funding gap.”

He is also stressed that although there is still a lot of uncertainties due to the Brexit vote, peer-to-peer platforms won’t be sitting on their hands and will continue to bring disruptive innovations to the market as well as being an alternative to traditional market based lenders.

Read more on the P2PFA research here.


UK Invoice Finance Platform, Raises Another £7.2M

MarketInvoice P2P

MarketInvoice, which plays in the peer-to-peer lending space by enabling U.K. businesses to raise money from institutional investors and high net worth individuals by ‘selling’ outstanding invoices, has raised a further £7.2 million. (Tech Crunch, July 2016)

MCI Capital, a listed Polish private equity group as well as existing backer Northzone have been involved with MarketInvoice’s funding – which now brings the total investment to just over £18 million.

The company told Tech Crunch that the raised funds will be used to help sustain its claimed position as the leader in invoice financing in the U.K., and also for product development.

In a nutshell, MarketInvoice works with hedge funds, asset managers, family Offices, and high net worth individuals. In addition, real-time auctions are used to determine how much of an invoice’s value will be provided as capital (minus the bidder’s cut), the company then makes money by also taking a small cut.

To sum it up, they enable businesses (from SMEs to larger companies) to free up money owed before an outstanding invoice is paid, thus providing much-needed liquidity. In turn, it gives investors a new asset class. Invoice finance and other forms of P2P lending play into a narrative that has seen banks reluctant to lend to small and medium-sized businesses and interest rates at a historic low, as Tech Crunch’s Steve O’Hear mentions.

Image source : Tech City News

Governance and Regulations are Key to the Future of P2P

P2P news


As mentioned in previous P2P news blogs, governance and regulations are key for the p2p industry, especially in countries such as China which has seen a lot of fraudulent activity (the Ezubao case springs to mind which was briefly mentioned in our last P2P round-up).

So why do we need it? Regulation and governance helps to protect both the investor and borrower, and gives the sector added credibility and will only serve to boost awareness and participation, as Money observer’s Chris Maule points out in an Interactive Investor article.

Here in the UK, measures have already been put in place, the industry here is known for being transparent, for example, the P2PFA make sure its members publish their loan books, reveal bad debt rates and include five years’ worth of credit performance.

The actions of the recent Lending Club case (which you can read about in one of previous P2P blogs) should be a sobering reminder of what could happen if they fail to play their parts in developing a transparent and honest product.

Image source : The Connectivist

P2P Funds Are Unaffected by Brexit vote



Peer-to-peer (P2P) lenders could stand to gain a greater market share as some banks have reduced appetites to lending in the wake of Brexit, according to Chirag Shah, CEO of Nucleus Commercial Finance. (Bridging and Commercial, July 2016)

Nucleus Commercial Finance’s CEO explained that P2P lenders are at an advantage as investors are less likely to withdraw their funding, this is all linked to some lenders that have begun to lose their funding lines as a result of financial turmoil caused by the recent EU referendum.

FundingKnight‘s managing director Jasper Ehrhardt, also agrees that P2P has been untouched by post-Brexit uncertainty.

His view is that P2P has an added advantage of having access to non-institutional funds, which are unaffected by Brexit and are the underlying drivers for continuing the low level of returns available from more traditional vehicles, such as savings accounts.

In addition, he stresses that the incentive has stayed the same, as P2P continues to see above-average rates of return on platforms, compared to bank and savings deposits.

Read more industry views here.

P2P is Heating up the World of Fintech

p2p fintech


We all know about how fintech is revolutionising finance and disrupting the banking sector and never before has the industry seen such a rapid and strong movement until now.

It’s now easier than ever to digitally connect people to money, and P2P lending takes advantage of that, and is growing by the numbers (as previously mentioned in the first news item).

Nikos Antoniade, CEO of easyMarkets, a company specialized in analyzing financial markets, says that the rise of fintech-related technologies is overwhelming, and that despite of all criticism, P2P lending is here to stay. (, July, 2016)

With so many segments of fintech, from payments, insurtech, asset management, etc. P2P is definitely one segment that is heating up, as this chart below from Zopa shows.


Zopa P2P Graph


Image source :


What Are Your Thoughts?

Which of our chosen P2P stories has interested you the most? We would love to hear from you, feel free to leave us a comment on our Facebook and Google Plus pages. If you prefer to tweet us, tweet @TheHouseCrowd.

In the meantime if you want to know more about Property Crowdfunding do register for our Information Pack which will tell you all about it. 

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The Latest P2P News – 7/7/16

P2P News – All The Latest Updates


Hi guys and welcome to our first P2P news blog of the month, as usual we will be giving you a snapshot of the latest news from the P2P world. This week we look at an array of topics from looking at the future of P2P to looking at how P2P performed last year. Missed our last P2P news update? If so, catch up here, in addition, take a look at Michele’s latest post on Real Estate P2P and Crowdfunding Leads Alternative Finance Industry.

P2P Has A Bright Future, Insists Dianrong Founder

P2P Future

Founder and chief executive of China’s peer-to-peer lending platform, Soul Htite feels that more platforms will collapse in the future.

As mentioned previously in a past P2P news blog round-up, the news of Lending Club’s founder Renaud Laplanche, stepping down from his position following an internal probe over allegedly mis-sold loans has made many question the legitimacy of the industry.

Dianrong’s founder mentioned in a recent South China Morning Post article that a system needs to created that nobody will be able to do what Ezubao (a Chinese P2P that defrauded 900,000 investors out of more than 50 billion yuan by offering high interest rates which it was unable to pay) did.

One idea he mentions about is to ask every P2P platform out there to have a custodian bank with which borrowers must have an account.

Moreover, he goes on to say : “The existence of custodian banks also makes sure that capital actually exists and flows to the borrower so that any Ponzi Scheme could be avoided.”

Htite’s company have also been experimenting with blockchain technology, which seems to be a key trend at the moment recently, with quite a few Indian P2P companies also conducting their own research on using the concept.

It seems the future of P2P (not just in China, but on a global level) will be a lot more transparent, as the Diarong example shows by using a custodian bank.

Htite told the South China Morning Post that he believes it is “very normal” to see market bubbles burst and is sure more Chinese P2P platforms will vanish due to failing to raise the money they need to survive.

He stresses that the companies who make industry adjustments will be the ones left standing.

You can read the full article here.


Disruptive P2P JustUs Launches

P2P News

A new lending platform has launched with plans to raise to raise £5.35m, including £1m on crowdfunding platform Crowdcube. (MEN, June, 2016).

JustUs aims to become a provider of the broadest range of peer-to-peer consumer loans and secured lending.

Financial services entrepreneur Lee Birkett mentioned in the MEN : “I believe we are completely disrupting the status quo with a range of accessible products for borrowers from a comprehensive range of backgrounds and credit history.”

In addition, he stressed this new P2P disrupter is democratic, by the people, for the people. Savers are uninspired by their humdrum returns. JustUS can give customers access to higher returns by bringing them together with a broad mix of consumer, guarantor and secured loan products.

During Beta testing of the JustUs site, it attracted £130m of borrower applications from a marketing spend of just £150,000.

Read more on the story here.


Alternative Finance Continues To Make Progress Despite Slowdown

Alternative finance p2p

Data from Cambridge University has shown that P2P lending for SMEs is helping drive continued growth in the alternative finance industry, despite an overall slowdown in the market.

Their research found that the UK online alternative finance industry grew by 84% to £3.2bn in 2015, from £1.74bn in 2014. This is compared to year-on-year growth between 2013 and 2014 of 161%. (CBR, February 2016)

Researchers at the university estimate that P2P business lending, excluding real estate lending, provided the equivalent of 13.9% of new bank loans to small businesses in the UK last year, this was based on 2014 data from the British Bankers Association.

Interested in the research conducted by Cambridge University? If so read more here.


P2P Lending Should Outperform In A Downturn

P2P news


According to Polar Capital’s Nick Grind, a significant downturn in the global economy should see P2P/marketplace lending funds outperform regular credit markets. (Altfi, June 2016)

His logic is that investment trusts could be buying back their shares to manage the discounts, plus in a downturn you’re going to see spreads widen on a fixed income portfolio.

The attraction of buying of buying P2P GI or one of the others is that in theory you are getting good risk adjusted returns and there is a lot of granularity.

Read more on Grind’s insights here.

Image source : The Connectivist


P2P Throwback : 2015 The Year P2P Lending Went Mainstream

P2P 2015

Since today falls on Throwback Thursday, we thought we would take a look back at P2P in 2015.

2015 was a landmark year for P2P in this country, with lending of £1.26 billion in 2015 accounting for almost half (47%) of all UK P2P lending.

In addition, consumer lending accounted for almost £1.1 billion of P2P lending in 2015, more than two-fifths (40.6%) of the total. In third place was invoice factoring and financing which, at a third of a billion pounds, accounted for an eighth (12.4%) of total lending. (Assetz Capital, January 2016).

The Big three P2P firms continued to dominate, in 2015 Zopa lent £532 million, Funding Circle were not to far behind but ended the year in second place with £531 million.

RateSetter finished the year with £518 million and came third. The likes of Lendinvest and Wellesley & Co. also had a great year, lending £301 million and £152 million respectively.

What Are Your Thoughts?

Which of our chosen P2P stories has interested you the most? We would love to hear from you, feel free to leave us a comment on our Facebook and Google Plus pages. If you prefer to tweet us, tweet @TheHouseCrowd.

In the meantime if you want to know more about Property Crowdfunding do register for our Information Pack which will tell you all about it. 

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The Latest P2P News – 20/6/16

P2P News – All The Latest Updates


Hi guys welcome to another edition of our P2P news blog. This week we start our news update by looking at the alternative finance challenges in mainstream lending for the SME market to focusing on the protection that P2P investors need. Missed our very first P2P round-up? If so, click here.


One In Six SME Owners Seeking Finance Say They Have Been Turned Down By A Mainstream Lender


Leading specialist lender Amicus conducted a study recently and found out that one in six (16%) SME owners seeking finance say they have been turned down by a mainstream lender (such as a high street bank).

Nearly a third of SME owners stated in the research that their inability to secure finance terms with a mainstream lender meant they had lost out on a business deal or investment opportunity. Because of this, SMEs have gained an interest in alternative finance – including forms such as property finance, crowdsourcing, invoice finance, asset finance and P2P lending.

Just over half of the SME owners that took part in the research believe that the huge amount of flexibility that alternative finance offers, is more appealing for SMEs to use, the number is up from 45% in 2015.

The respondents’ views on alternative finance included :- greater ability to lend (46%) was second and longer payment terms (34%) was third. Speed (30%), specialist knowledge of their clients’ industries and challenges (29%) and more compelling payment structures (27%) was ranked fourth, fifth and sixth respectively. (Stats taken from Finextra)

Over half of the respondents said they have already used alternative finance or considered using it.

Image source : Business Europe

Online Lenders Hit Back At The Deloitte Report

P2P Deloitte

Deloitte recently released quite a brutal report on marketplace lending, predicting that it will not pose a threat to the mass market or to banks or that it will be significant.

Those in the industry were quick to hit back at Deloitte’s reports. For example, Assetz Capital CEO Stuart Law shared his views on Business Insider saying that : “When a system fails, like the banking system in 2008, new entrants will emerge to correct the mistakes. We’ve seen a huge growth in the peer-to-peer finance sector because of that failure, and it’s no surprise that questions are being asked over how banks and Peer to Peer will sit together in the future.”

He also went on to say that he sees no reason why banks and peer-to-peer lenders can’t operate side by side as they are not addressing exactly the same markets.Last year his company and RBS announced a partnership whereby if RBS was unable to provide a business with a loan, it would pass the relevant details to Assetz Capital, which will work with the business to develop an appropriate loan package to suit both peer-to-peer investors and the business.

Deloitte’s report also states that P2P is more expensive than banks and whilst that may be true for some platforms, however, the likes of Assetz Capital are very competitive against challenger banks due to having a  low cost of funding and are expected to become more and more so with the introduction of the new Innovative Finance ISA (IFISA).

Read more industry opinions here.

Image source : Linc inc

Indian P2P Platforms Look At Blockchain Technology

India Blockchain

P2P companies in India (Faircent, Micrograam and i-lend) are looking at exploring blockchain technology in order to increase transparency levels.

India’s reported that these start-ups aim to serve as a “ledger system” to automate and record transactions on their platform. However, they have to wait for approval from the Reserve Bank of India for integrating the technology into their systems.

Micrograam’s founder, Rangan Varadan told Econotimes : “This can be done without the use of cryptocurrency. This could be a transformational tool in doing payment transactions.”

The Reserve Bank of India released a consultation paper that mentioned that P2P platforms in the country cannot directly engage in money transactions between the lender and the borrower, once the credit underwriting process has been conducted.

A fintech report by Nasscom and KPMG stated that there is huge scope in understanding the potential of blockchain technology in managing p2p remittances in the Asian country.

New to blockchain technology? If so, watch the video below.


China’s P2P Lending Faces A Regulatory Shakeup

China P2P


Staying in Asia, we now look at P2P in China (in our first P2P blog we also looked at Chinese P2P – view here), in a recent video spotted on Yahoo Finance, Lufax CEO Gregg Gibb enlightens CNBC viewers in a brief interview that there are thousands of P2P lenders out there in China and that from day one there has been a few practises that haven’t been right and as a result regulator pressure is coming in as there is a large need for borrowing, investing, and what working out is becoming to be clear.

Gibb stressed that a high level of transparency needs to go up and as soon as you create transparency, regulation becomes more easier. The CNBC news interviewer questioned Lufax’s transparency efforts, he told her that they make it very clear to every investor what they are investing in, who the money is going to and also to make it clear about the contractual relationship. Moreover, he mentions about the importance of using tools – e.g. to show how to rate and measure something. To sum it up, he says that it is all about the transparency aspect in P2P.

Although there isn’t a “one size fits all” approach to P2P, in my opinion China can look at The UK when it comes to P2P, over here, P2P companies have to record all transactions (the above example of Indian companies using blockchain would be good for companies around the world), as well as submitting full loan books and the performance of investment returns.

Watch the CNBC interview here.


P2P Investors Need More Protection

P2P protection


Andrew Tyrie, who chairs the Treasury Select Committee has stressed for the need for more protection for P2P investors.

Mr Tyrie challenged lenders’ systems of checking creditworthiness and asked how peer-to-peer lenders made sure they were getting accurate information about the risks. (Telegraph, June, 2016).

In a letter which he sent to thee Financial Conduct Authority (FCA), he stated : “Whether, and if so to what extent, investors would benefit from stronger consumer protection now needs careful thought. Poorly informed investors may be left with a false sense of security about the balance of risks versus returns.” (Telegraph, June, 2016)

Since April this year, P2P lenders have been allowed to offer their products inside an ISA.

The issue here is that there are a lot of lenders out there that are yet to be fully regulated by the FCA.

Christine Farnish, who chairs the Peer-to-Peer Finance Association, replied back saying that P2P websites are audited frequently, plus all members are required to publish in full the details of their loan books to ensure that investors are able to hold platforms to account on credit assessment.

As mentioned in the above news item and looking at the previous paragraph, there is a high amount of transparency in the P2P industry in the UK, however, it clearly shows that there needs to have more regulations set in stone, especially from the consumer side. Read more on the topic here.

What Are Your Thoughts?

Which of our chosen P2P stories has interested you the most? We would love to hear from you, feel free to leave us a comment on our Facebook and Google Plus pages. If you prefer to tweet us, tweet @TheHouseCrowd.

In the meantime if you want to know more about Property Crowdfunding do register for our Information Pack which will tell you all about it. 

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Millennials and The FinTech Revolution

Millennials are ten times more likely to use peer to peer lending sites than their parents’ generation.

It’s no surprise, really, considering that this is a generation reared on technology from day one. The Millennial is also big on the convenience involved in transacting online, and as a result of witnessing the financial crash of 2008 first hand, are significantly more sceptical of traditional banking and investment.

The Financial Life of the Millennial Investor

This is also a generation that thrives on independence, or a sense of it anyway. Perhaps that’s partly a result of the lack of control the Millennial feels over their financial status.

Whilst the typical Millennial is confident about their prospects for professional and financial success in the future, when it comes to working out how to bridge the gap between their current financial situation and the one they’re aiming for, they get stuck.

They are acutely aware of their need to buckle down and make positive decisions for their financial future, and their mistrust of existing financial institutions leads them in the direction of new innovations.


Casting aside the old financial institutions that they see as outmoded at best, and corrupt at worst, the Millennial generation is crafting a new financial landscape, taking its lessons from the failures of the old models, reinjecting democracy, and merging it with technology.

The result is a great new hybrid, fresh in its infancy, with a big future ahead of it. FinTech is born.

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Millennial P2P investors are starting out on sites like Funding Circle, Indiegogo and KickStarter, investing small amounts in new innovations and businesses. Similarly, we at The House Crowd have noticed a considerable rise in interest in the sector.

For example, according to innovation charity, Nesta, in 2015 the alternative finance market grew to £3.2 billion, whilst equity crowdfunding now makes up around 16% of all seed and venture-stage equity investment in the UK. Millennials extending their newfound thirst for investment to the property sector just seems like a logical progression.

Millennials and The Property Ladder

Our survey, back in October 2015, reported that nearly a quarter of Millennials think they will have to wait for a member of their family to die before they can afford to buy property. Many more may not even have that to (cynically-speaking) look forward to.


36% of respondents said that they felt they’d be renting forever, with no sign of a property purchase looking likely anywhere on the horizon. It’s a sad state of affairs, that’s for sure. But is it a certainty?

Given that Millennials have already caught the scent of the benefits of investment through their interest in other P2P lending opportunities, moving beyond conventional routes to getting on the property ladder, such as via property crowdfunding, could be a popular move.

However, there are some differences between the P2P lending sites they’re used to, and the higher stakes of property crowdfunding.

Whilst an investor on Kickstarter can back a project for a handful of coins, it’s going to be at least £1,000 to put money into a property crowdfunding campaign. Mind you, when you put that against the £33,000 average for a deposit on a first home (£91,409 in Greater London), it’s a no-brainer.

In other words, you may not be able to raise that whopping deposit, but property crowdfunding offers the chance to enter the property ladder, albeit at an oblique angle.

Is Crowdfunded Property Investment The Answer?

For the Millennial with a bit of liquid floating around, but not enough to buy the house of their dreams just yet, the chance to invest in property (without all the awkwardness of mortgage lenders and banks) certainly beats sticking your spare cash in a boring old ISA and only earning 1.5% on it.


A £1,000 investment may seem like small fry to the more sophisticated investor, for the younger Millennials just coming of age in the era of FinTech, it’s a step in a braver direction.

Research from the US indicates that Millennials are demonstrating much higher levels of caution when it comes to risk, so property crowdfunding actually offers a safe haven for them, allowing them to spread their investments, and thus, their risk.

The majority still equate risk with the idea of permanent loss, and considering what the Millennial generation has seen go down in the recent financial meltdown, you can hardly blame them. But for those prepared to weather that risk, potential returns through property crowdfunding are certainly turning heads amongst the younger generation.


Are you a Millennial just starting out with p2p and property crowdfunding? If you are, and even if you’re not, we’d love to hear from you! Feel free to leave us a comment on our Facebook and Google Plus pages. If you prefer to tweet us, tweet @TheHouseCrowd.


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The Latest P2P News – 18/5/16

P2P News – All The Latest Updates

Hi guys and welcome to our very first P2P news blog, just like our property and crowdfunding news blogs we will be giving you a quick snapshot featuring five top stories. Today we look at an array of interesting topics from UK lenders say P2P is safe to looking at some key takeaways from the industry so far.


P2P is ‘Safe’, Say UK Lenders

P2P News P2P Lending


UK P2P lenders have reassured investors that they are safe despite the calls for tighter regulations.

The P2P industry — in a nutshell involves matching borrowers directly with lenders online — was thrown into the spotlight last week when a high-profile US lender’s chief executive resigned.

Lending Club’s founder Renaud Laplanche, stepped down from his position following an internal probe over allegedly mis-sold loans according to the FT.

As a result UK lenders were keen to distance themselves from the P2P company and also pointed out that regulations involving lenders in the UK differs from the regulations for their U.S. counterparts.

The big difference between the UK and The U.S. is that the UK regulations were written specifically for P2P lenders. In contrast, U.S. lenders follow rules devised before peer-to-peer lending existed as FT’s Aime Williams points out in her article (link below).

P2P in the UK is also known for being very transparent, the industry body for UK p2p lenders, the P2PFA, noted that its members publish their loan books.

In addition P2PFA members follow a number of agreements to enhance transparency levels, including publishing bad debt rates and five years of credit performance, as well as a returns performance and submitting full loan books.

However, some have mentioned that things should go further. For example, Chief executive of AltFi Data, Rupert Taylor told the FT : “People recognise the benefits of transparency, but there’s more that can be done.”

You can read more on this topic here.


China : The Red Dragon Reins in P2P Lending

P2P News China

China is tightening its grip on a surge of peer-to-peer (P2P) lending amid a string of mismanagement and fraud in the lightly regulated sector. (The Straits Times, May, 2016)

The point of doing this is to limit the potential instability these lenders might pose to the country’s wider economy and society.

In recent years there has been a surge in P2P lenders in China, mainly from websites that connect borrowers to lenders and according to Chinese data company Wind Information, there were 2,600 platforms at the end of last year.

Lending hit over 980 billion yuan last year, soaring from 253 billion yuan in 2014, making China’s P2P market the largest in the world.


Lendix Raises $13.5 million To Become Leading European P2P Platform

P2P News Lendix

The French startup has raised $13.5 million (€12 million) and now wants to become one of the leading European P2P lending platforms.

Lendix was launched last year and in it’s first year has managed €20 million worth of medium-term business loans. According to Tech Crunch, Lendix manages loans for small and medium companies for 3 to 6 years with annual returns between 4 and 9 percent for the lenders.

Lendix is going to expand to other European countries now they have taken the French market by storm, they plan to get involved with the Spanish and Italian markets respectively in the coming months. For each European expansion, the French startup has to work on getting a license to operate on these new markets. In addition, Rules can be slightly different as well. It’s a long and bureaucratic process, however, it is a good barrier to entry for foreign competitors.

You can read more about Lendix here.

Image source : Lendix


Why Banks Should Be Offering More P2P & Bitcoin Services For SMEs

P2P News Banks

Banks are facing “stiff competition” from fintechs, and should be offering more “value-added products”, such as peer-to-peer lending, bitcoin and cloud services according to Accenture’s SME Banking 2020 report.

They found there is a clear appetite among many SMEs for these value-added services and this currently represents a missed opportunity. Their data indicated that banks could be generating £1.6bn a year more in revenue from these services, representing potentially £8.5bn by 2020.

Gareth Wilson, Accenture banking practice lead for the UK and Ireland told City A.M. : “SMEs want banks to be more relevant and provide a wider range of business services”.

Moreover, he stressed that banks need to recognise and seize this opportunity. Unless they do, SMEs may take their business elsewhere and look for alternatives.


P2P Takeaways

P2P News

Lastly, here are some key P2P takeaways :

  • The P2P lending industry is seeing significant growth, especially in developed countries with strong financial markets. P2P lenders in the US generated $6.6 billion in loans last year, up 128%.
  • Europe is the next big market for P2P lending: The alternative finance market in Europe reached nearly €3 billion ($3.9 billion) in 2014, a 144% jump, and small-business P2P loan volume in France grew almost 4,000% last year, to reach €8.2 million ($10.6 million).
  • The US has one of the largest P2P lending markets in the world by loan volume, but the UK’s is 72% larger on a per capita basis. Low consumer confidence in banks (even before the financial crisis), a high degree of comfort with online platforms, and a positive regulatory environment have all helped nurture the UK’s P2P lending market.

Stats taken from Tech Insider.

What Are Your Thoughts?

Which of our chosen P2P stories has interested you the most? We would love to hear from you, feel free to leave us a comment on our Facebook and Google Plus pages. If you prefer to tweet us, tweet @TheHouseCrowd.

In the meantime if you want to know more about Property Crowdfunding do register for our Information Pack which will tell you all about it. 

Register Now For More Information